~ Results In-Line with Previously Announced Third Quarter Preliminary Results ~
~ Third Quarter Revenue Increased 39% to $6.1 Million YoY and 11% from Second Quarter 2024 ~
~ FY2024 Projected Revenue of $20.0 Million, Representing a 20% YoY Increase ~
~ On Track to Achieve Operating Cash Flow Breakeven by The First Quarter of 2025 ~
MARLBOROUGH, Mass., Dec. 16, 2024 (GLOBE NEWSWIRE) -- ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) (“ConnectM” or the “Company”), a technology company focused on the electrification economy, has filed its 10-Q with the Securities and Exchange Commission (the “SEC”) and released its financial results for the quarter ended September 30, 2024.
Third Quarter and First Nine Months 2024 Financial Results
2024 Operational Updates
Subsequent Events
Outlook
For the fourth quarter and full year 2024, the Company expects revenues of approximately $7 million and $24 million respectively.
About ConnectM Technology Solutions, Inc.
ConnectM is a technology company focused on advancing the electrification economy by integrating electrified energy assets with its AI-powered technology solutions platform. The Company provides residential and light commercial buildings and all-electric original equipment manufacturers with a proprietary Energy Intelligence Network platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. Leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, ConnectM aims to make electrification more user-friendly, affordable, precise, and socially impactful. As a vertically integrated company with wholly owned service networks and a comprehensive technology stack, ConnectM empowers customers to reduce their reliance on fossil fuels, lower overall energy costs, and minimize their carbon footprint.
For more information, please visit: https://www.connectm.com/
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this press release, regarding our future financial performance and our strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control.
In addition, we caution you that the forward-looking statements regarding the Company contained in this press release are subject to the risks and uncertainties described in the “Cautionary Note Regarding Forward-Looking Statements” section of the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2024. Such filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ConnectM is under no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
MZ North America
(203) 741-8811
ConnectM@mzgroup.us
|
CONNECTM TECHNOLOGY SOLUTIONS, INC. (SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION) CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 (AUDITED) (in thousands, except share and per share amounts) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,882 | $ | 1,160 | ||||
| Accounts receivable, net | 1,863 | 685 | ||||||
| Contract asset | — | 344 | ||||||
| Convertible note receivable | — | 445 | ||||||
| Inventory | 320 | 277 | ||||||
| Deferred offering costs | — | 1,297 | ||||||
| Due from Monterey Capital Acquisition Corporation | — | 2,491 | ||||||
| Forward purchase agreement | 2,196 | — | ||||||
| Prepaid expenses and other assets | 1,191 | 651 | ||||||
| Total current assets | 7,452 | 7,350 | ||||||
| Right-of-use asset - operating lease | 199 | 284 | ||||||
| Right-of-use asset - finance lease | 167 | 252 | ||||||
| Property, plant and equipment, net | 996 | 1,138 | ||||||
| Goodwill | 3,037 | 2,247 | ||||||
| Intangible assets, net | 1,851 | 1,841 | ||||||
| Investment recorded at cost | 45 | 45 | ||||||
| Total Assets | $ | 13,747 | $ | 13,157 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 10,357 | $ | 3,860 | ||||
| Accrued expenses | 4,631 | 1,718 | ||||||
| Due to Libertas | 1,057 | — | ||||||
| Due to related party | 686 | — | ||||||
| Current portion of debt, related party | 85 | 85 | ||||||
| Current portion of debt, net of debt discount | 15,966 | 11,935 | ||||||
| Current portion of convertible debt, at fair value | 4,392 | 2,179 | ||||||
| Current portion of operating lease liability | 114 | 115 | ||||||
| Current portion of finance lease liability | 114 | 99 | ||||||
| Current portion of contingent consideration | 199 | — | ||||||
| Contract liabilities | 662 | 1,121 | ||||||
| Income taxes payable | 386 | — | ||||||
| Total current liabilities | 38,649 | 21,112 | ||||||
| Non-current portion of operating lease liability | 118 | 173 | ||||||
| Non-current portion of debt, related party | 99 | — | ||||||
| Non-current portion of finance lease liability | 115 | 203 | ||||||
| Noncurrent portion of debt, net of debt discount | 1,417 | 1,150 | ||||||
| Contingent consideration | 377 | — | ||||||
| Total liabilities | 40,775 | 22,638 | ||||||
| Commitments and Contingencies (Note 9) | ||||||||
| Mezzanine Equity | ||||||||
| Series Seed Convertible Preferred Shares; 0 and 2,139,050 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | — | 2,200 | ||||||
| Series Seed-1 Convertible Preferred Shares; 0 and 302,642 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | — | 293 | ||||||
| Series A-1 Convertible Preferred Shares; 0 and 2,467,990 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | — | 3,195 | ||||||
| Series B-1 Convertible Preferred Shares; 0 and 2,158,357 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | — | 3,984 | ||||||
| Series B-2 Convertible Preferred Shares; 0 and 995,509 shares authorized, issued, and outstanding as of September 30,2024 and December 31, 2023, respectively | — | 2,311 | ||||||
| Total mezzanine equity | — | 11,983 | ||||||
| Stockholders’ Deficit: | ||||||||
| Preferred stock Series A, $0.001 par value, 10,000,000 and 1,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 0 shares issued or outstanding as of September 30, 2024 and December 31, 2023, respectively | — | — | ||||||
| Common stock, $0.0001 par value, 100,000,000 shares authorized as of September 30, 2024 and December 31, 2023, respectively, 21,124,057 and 5,291,381 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 2 | — | ||||||
| Additional paid-in-capital | 11,425 | 1,307 | ||||||
| Accumulated deficit | (39,910 | ) | (22,860 | ) | ||||
| Accumulated other comprehensive income | 144 | 115 | ||||||
| Stockholders’ deficit | (28,340 | ) | (21,438 | ) | ||||
| Noncontrolling interests | 1,311 | (26 | ) | |||||
| Total stockholders’ deficit | (27,029 | ) | (21,464 | ) | ||||
| Total liabilities, mezzanine equity and stockholders’ deficit | $ | 13,747 | $ | 13,157 | ||||
|
CONNECTM TECHNOLOGY SOLUTIONS, INC. (SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (Unaudited) (in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 6,074 | $ | 4,384 | $ | 17,299 | $ | 15,484 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of revenues | 4,200 | 3,716 | 11,010 | 11,020 | ||||||||||||
| Selling, general and administrative expenses | 4,900 | 2,843 | 11,773 | 8,780 | ||||||||||||
| Loss on impairment of intangible assets | — | — | 406 | — | ||||||||||||
| Loss from operations | (3,026 | ) | (2,175 | ) | (5,890 | ) | (4,316 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (667 | ) | (472 | ) | (1,820 | ) | (902 | ) | ||||||||
| Loss on extinguishment of debt | — | — | (592 | ) | — | |||||||||||
| Change in fair value of convertible notes | (1,623 | ) | 182 | (1,623 | ) | 182 | ||||||||||
| Change in fair value of forward purchase agreement | (8,575 | ) | — | (8,575 | ) | — | ||||||||||
| Gain on forward purchase agreement modification | 1,443 | — | 1,443 | — | ||||||||||||
| Other income (expense), net | 270 | (149 | ) | 59 | 4 | |||||||||||
| Total other income (expense) | (9,152 | ) | (439 | ) | (11,108 | ) | (716 | ) | ||||||||
| Loss before income taxes | (12,178 | ) | (2,614 | ) | (16,998 | ) | (5,032 | ) | ||||||||
| Income tax benefit | — | — | — | — | ||||||||||||
| Net loss | $ | (12,178 | ) | $ | (2,614 | ) | $ | (16,998 | ) | $ | (5,032 | ) | ||||
| Net income (loss) attributable to noncontrolling interests | 60 | (7 | ) | 52 | (28 | ) | ||||||||||
| Net loss attributable to shareholders’ | $ | (12,238 | ) | $ | (2,607 | ) | $ | (17,050 | ) | $ | (5,004 | ) | ||||
| Foreign currency translation adjustments | 19 | 26 | 29 | 92 | ||||||||||||
| Comprehensive loss | $ | (12,159 | ) | $ | (2,588 | ) | $ | (16,969 | ) | $ | (4,940 | ) | ||||
| Comprehensive income (loss) attributable to noncontrolling interest | 60 | (7 | ) | 52 | (28 | ) | ||||||||||
| Comprehensive loss attributable to common stockholders | $ | (12,219 | ) | $ | (2,581 | ) | $ | (17,021 | ) | $ | (4,912 | ) | ||||
| Weighted average shares outstanding of common stock | 20,171,922 | 21,124,057 | 15,643,799 | 21,124,057 | ||||||||||||
| Basic and diluted net loss per share, common stock | $ | (0.61 | ) | $ | (0.12 | ) | $ | (1.09 | ) | $ | (0.24 | ) | ||||
|
CONNECTM TECHNOLOGY SOLUTIONS, INC. (SUCCESSOR TO MONTEREY CAPITAL ACQUISITION CORPORATION) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (Unaudited) (in thousands) | ||||||||
| For the Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Loss | $ | (16,998 | ) | $ | (5,032 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation expense | 188 | 201 | ||||||
| Amortization of intangible assets | 319 | 377 | ||||||
| Amortization of debt discount | 60 | 250 | ||||||
| Stock-based compensation expense | 36 | — | ||||||
| ROU amortization on finance leases | 86 | 134 | ||||||
| ROU amortization on operating leases | 85 | 135 | ||||||
| Gain on disposal of property and equipment | — | (22 | ) | |||||
| Loss on impairment of intangible assets | 406 | — | ||||||
| Loss on extinguishment of debt | 592 | — | ||||||
| Unrealized loss (gain) on fair value measurement of debt | 1,623 | (182 | ) | |||||
| Change in fair value of forward purchase agreement | 8,575 | — | ||||||
| Gain on modification of forward purchase agreement | (1,443 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (559 | ) | (52 | ) | ||||
| Contract asset | 344 | — | ||||||
| Inventory | (42 | ) | (178 | ) | ||||
| Prepaid expenses | (26 | ) | (68 | ) | ||||
| Accounts payable | 2,722 | 531 | ||||||
| Accrued expenses | 1,296 | 386 | ||||||
| Operating lease liabilities | (56 | ) | (133 | ) | ||||
| Contract liabilities | (459 | ) | 130 | |||||
| Net cash used in operating activities | (3,251 | ) | (3,523 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (59 | ) | (49 | ) | ||||
| Proceeds from the sale of property and equipment | — | 57 | ||||||
| Investment in cost method investment | — | (45 | ) | |||||
| Issuance of convertible note | — | (375 | ) | |||||
| Cash paid for noncontrolling interest | (60 | ) | — | |||||
| Cash acquired in Delivery Circle Acquisition | 699 | — | ||||||
| Cash paid for capitalized software development costs | (129 | ) | (35 | ) | ||||
| Net cash provided by (used in) investing activities | 451 | (447 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Gross proceeds from the business combination | 80,095 | — | ||||||
| Cash paid in connection with forward purchase agreement | (37,624 | ) | — | |||||
| Proceeds from forward purchase agreement | 766 | — | ||||||
| Proceeds from the issuance of debt | 5,874 | 6,828 | ||||||
| Proceeds from the issuance of convertible notes | 740 | 900 | ||||||
| Proceeds from related party debt | 99 | — | ||||||
| Cash paid for debt issuance costs | (788 | ) | (731 | ) | ||||
| Payments of deferred offering costs | (1,243 | ) | (1,782 | ) | ||||
| Payments of debt | (1,765 | ) | — | |||||
| Advance to Monterey Capital Acquisition Corporation | (1,934 | ) | — | |||||
| Advance from lender | 1,057 | (1,840 | ) | |||||
| Payments on convertible notes | (50 | ) | — | |||||
| Payments for redemptions of preferred stock | (41,653 | ) | — | |||||
| Payment on finance leases | (73 | ) | (111 | ) | ||||
| Net cash provided by financing activities | 3,501 | 3,264 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 21 | 102 | ||||||
| Increase (decrease) in cash and cash equivalents | 722 | (604 | ) | |||||
| Cash, beginning of year | 1,160 | 1,923 | ||||||
| Cash, end of year | $ | 1,882 | $ | 1,319 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 486 | 275 | |||||
| Cash paid for taxes | $ | — | $ | — | ||||
| Supplemental disclosures of noncash financing information: | ||||||||
| Recognition of right-of-use asset, operating | $ | — | $ | 200 | ||||
| Recognition of right-of-use asset, finance | $ | — | $ | 56 | ||||
| Vehicles acquired through issuance of debt | $ | — | $ | 316 | ||||
| Conversion of preferred stock to common stock | $ | 11,982 | $ | — | ||||
| Conversion of convertible debt to common stock | $ | 3,779 | $ | — | ||||
| Recapitalization of ACA noncontrolling interests | $ | 111 | $ | — | ||||
| Prepaid insurance financed through funding agreement | $ | 435 | $ | — | ||||